If you’re a homeowner in Fresno looking into solar, chances are you’ve already noticed one of the biggest questions is: How do I pay for it? Solar energy is a smart investment, especially in Central California where electricity rates are among the highest in the country. But the way you choose to finance your system can make a big difference — not just in your monthly payments, but in long-term savings, tax incentives, and even home value.
The Three Main Ways to Finance a Solar System
1. Solar Loans – Own Your System
A solar loan works just like a car loan or a home improvement loan. You borrow money from a lender (like a bank, credit union, or specialty solar finance company) to purchase the solar system outright. You’ll make monthly payments over a set loan term, which can range anywhere from 5 to 25 years.
Most homeowners choose longer loan terms — like 20 or 25 years — because it allows them to completely eliminate their PG&E bill and replace it with a smaller, fixed solar payment.
Key Benefits of Solar Loans:
- You own the system
- You qualify for the 30% federal solar tax credit
- You can increase the value of your home
- Your monthly payment can be lower than your current electric bill
- No prepayment penalties with many lenders
2. Solar Leases – Rent the System
A lease is similar to renting solar equipment. The solar provider owns the system and handles maintenance. You simply pay a monthly lease payment to use the energy it generates. This model was more common under older utility programs like NEM 1.0 and NEM 2.0 but is less popular under current net billing (NEM 3.0).
Key Considerations with Solar Leases:
- You do not own the system
- You do not qualify for the 30% tax credit
- Maintenance is included
- You must list the system as leased when selling your home
- The lease may need to be transferred to the new owner
3. Power Purchase Agreements (PPAs) – Buy the Power, Not the System
A PPA is very similar to a lease. The solar provider installs and owns the system, but instead of paying a flat monthly fee, you pay for the electricity it produces — usually at a discounted rate per kilowatt hour compared to the utility company.
You’re essentially renting the solar production, not the panels themselves.
PPAs Include:
- No upfront cost
- Discounted power rates (usually 15%–30% lower than utility)
- No ownership, which means no tax credit
- Limited ability to increase home value
- Contract terms typically range from 15–25 years
Why We Recommend Solar Loans for Most Fresno Homeowners
At Supreme Solar & Electric, we recommend solar loans for most of our residential customers, especially under today’s NEM 3.0 policy.
Why? Because a solar loan gives you full control. You own the system. You get the tax credit. And when it’s paid off, you’ll have free energy for the life of the system (typically 25 years or more). Most systems break even in 5 to 7 years, and from there, it’s all savings.
Local Financing Options for Fresno Residents
One of the biggest advantages Fresno homeowners have is access to some of the best solar financing programs in California through local credit unions and state-backed initiatives.
California GoGreen Financing Program
We’re a proud partner of the California GoGreen Financing Program, which is specifically designed to help homeowners upgrade to clean energy with affordable loan options. This program provides access to low-interest financing with flexible terms, often with no fees and no prepayment penalties.
Local Credit Unions We Work With
If you’re in the Fresno or Central Valley area, here are a few of the top credit unions we work with to help finance solar installations:
- EECU (Educational Employees Credit Union)
One of the most trusted names in Fresno with competitive rates for home energy improvements. - Self-Help Federal Credit Union
Known for community-first lending and affordable solar loan options. - Travis Credit Union
Offers energy efficiency and solar financing packages with great rates for qualified borrowers. - California Coast Credit Union
Another strong option for long-term loans with low fixed rates and easy application processes.
Qualifying for the Best Rates
Most solar financing programs are based on your credit score and income. Homeowners with credit scores above 720 typically qualify for the best rates, but there are plenty of programs available for those in the 640–700 range as well.
Many of our customers are able to qualify for financing with no money down, and payments often come in at 30% to 50% lower than their current utility bills.
How Financing Affects the 30% Federal Tax Credit
This is one of the most important differences to understand.
- If you buy your system with a loan, you qualify for the 30% federal solar tax credit, based on the total project cost (including installation and batteries).
- If you lease or sign a PPA, you do not qualify. The solar provider gets the tax credit, not you.
That 30% tax credit makes a huge difference in the system’s payback period. Without it, the system takes longer to pay off and you lose a major portion of the financial benefit.
How Financing Impacts Home Value
If you own your solar system, you can increase your home’s value by 2% to 3% on average. When you sell your home, the solar system is part of the property and can be a major selling point.
If you lease or have a PPA, you’ll need to transfer the contract to the new owner — which can sometimes complicate the sale or even lower the perceived value of the home.
Example: Real Solar Financing in Fresno
Here’s a real-life example from one of our customers in Clovis:
- Home Size: 2,600 square feet
- Old PG&E Bill: $644/month average
- Solar System: 11 kW with three batteries (30 kWh storage)
- Financing: 20-year loan with GoGreen Financing
- New Payment: $290/month
- Tax Credit: Over $12,000
- Savings: Over $4,000/year, with full battery backup and ownership
This customer will pay off their system in about 7 years, and save tens of thousands of dollars over the life of the system.
Final Thoughts: What’s the Best Option?
For most Fresno residents, the best option is to finance the solar system with a loan. It gives you ownership, access to the tax credit, and the ability to significantly increase your home’s value. Leases and PPAs can work for some, but they don’t offer the same long-term benefits.
With programs like GoGreen and partnerships with local credit unions, there’s never been a better time to invest in solar.
Ready to See Your Solar Savings?
If you’re in Fresno, Clovis, or anywhere in the Central Valley, let’s see what you qualify for. We’ll walk you through your options, estimate your savings, and make sure you’re getting the best system with the best financing.
Reach out today to get your custom solar proposal.